A £56,000 council levy imposed on a Fife developer to go towards affordable housing is to be scrapped, the Scottish Government has ruled.
Dunfermline based Hunter and Turnbull were at loggerheads with the local authority over the payment included in their original planning approval to transform the former Carnegie Clinic.
The firm had even signed a section 75 legal agreement agreeing financial contributions for education and affordable housing.
‘Unnecessary’ fees
However, in February they applied to have the condition effectively torn up, arguing they shouldn’t have to pay the “unnecessary” fees.
But the money row escalated further when councillors rejected that request in July.
The local authority said the firm had “failed to provide sufficient evidence to set aside the requirement to provide contributions”.
That decision triggered a subsequent appeal to the government’s planning and environmental appeals division.
And this week that body agreed to uphold the appeal and scrap the council imposed charges.
The historic town centre B-listed building, opened in 1912, had been deemed surplus to requirements by NHS Fife in 2013 and later put up for sale for offers over £275,000.
Luxury flats
A section 75 legal agreement had required the developer to pay £2,666 towards an extension at St Margaret’s Primary School as well as an affordable homes contribution of £54,000.
However in its appeal, agent TMS Planning and Development Services, on behalf of Hunter and Turnbull said: “Hunter and Turnbull are taking this iconic disused listed building at the heart of Dunfermline and transforming it into new homes by the sympathetic refurbishment of the fabric of the structure providing for its sustainable and long-term use (and maintenance).”
“It is extremely disappointing that Fife Council, rather than acknowledging the investment and commitment to deliver a development of this nature, are seeking to penalise the development by seeking to apply additional costs which are unrelated to the development and any realistic impacts arising and which run contrary to current FIFEplan policy and related requirements.”
In addition they added: “There is no adverse impact on affordable housing resulting from the development (no loss of infrastructure capacity caused by the development) and, was there any real potential impact related to education capacity then this would be minimal, if indeed discernible.”
Ruling scraps £56,000 levy
In a lengthy 11-page ruling, Paul Cackette, the Scottish Ministers appointed Reporter ruled the fee is not required for the Inglis Street development.
The Directorate of Planning and Environmental Appeals (DPEA) ruling said the council had failed in five key areas.
He said: “Circular 3/2012 requires that a planning obligation must meet all five tests in paragraph 14 (planning purpose, relationship to the development, scale and kind, and reasonableness).
“As it fails to do so, I allow the appeal. I determine that the planning obligation in the Agreement under section 75B of the Town and Country Planning (Scotland) Act 1997 in this case is removed and discharged.”
Fife Council service manager Alastair Hamilton said the council is considering the “context and implications” of the Reporter’s decision before taking any further action.
